Copper Plunges to Six-Year Low Amid Demand Concerns
Aug, 19th 03:38
Copper slid down to more than six-year low Tuesday, as concerns over demand from China pushed much of the metals sector, including gold, lower.
High-grade copper for September delivery lost 3.4 cents, or 1.5%, to settle at $2.287 a pound on Comex, marking the lowest settlement price for a most-active contract since July 13, 2009.
Many investors view troubles in China’s stock market as a proxy for broader economic woes in one of the largest importers of metals in the world. The Shanghai Composite Index tumbled 6.2% Tuesday, despite signals of a housing recovery and the Chinese central bank’s steps to stem capital outflow.
Copper prices shaved off 1.3% Monday on worries that China’s recent devaluation of the yuan will slow the country’s imports of the industrial metal.
Like many other commodities, copper is traded in dollars, so a stronger greenback against the yuan means the metal gets more expensive for Chinese buyers.
The stronger dollar also weighed on gold futures, which gave back some of their Monday gains while silver prices slumped by more than 3%.